Impact of the Belgian capital gains tax upon relocation outside Belgium
Background
As of 1 January 2026, Belgium has introduced a generalized capital gains tax. This tax notably affects individuals who qualify as Belgian tax residents and who hold title (including bare ownership, but excluding usufruct) to certain categories of financial assets. These assets include, among others, shares acquired under equity-based compensation plans implemented at the level of the employer or its ultimate parent company.
In principle, the capital gains tax applies upon a transfer for consideration, provided that an actual capital gain is realized at that time and subject to a possible exemption (generally up to EUR 10,000 per year, which may be higher in the case of a substantial shareholding).
As an exception to this rule, a Belgian tax resident may be subject to a so-called “exit tax” in specific situations, such as when covered financial assets are donated to a non-Belgian beneficiary or more importantly when the individual relocates outside Belgium.
Exit tax upon relocation
To determine the extent of the exit tax liability, a distinction must be made between the following scenarios:
1. Relocation to a qualifying country
This includes relocations to:
- Another EU Member State,
- An EEA country, or
- A country with which Belgium has concluded a tax treaty providing for exchange of information and reciprocal assistance in tax recovery.
In this case, payment of the exit tax is automatically deferred until the moment an actual capital gain is realized.
2. Relocation to a non-qualifying country
In this scenario, a deferral of payment may be requested, provided that sufficient guarantees are offered (e.g. a bank guarantee).
Additional considerations (applicable in both scenarios):
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The exit tax is calculated based on the latent (i.e. unrealized) capital gain at the time of relocation.
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Where payment is deferred, the individual must annually submit a certificate confirming that the conditions for deferral continue to be met.
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The exit tax liability is extinguished if, within 24 months following relocation:
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the individual returns to Belgium (in which case the standard rules apply again), or
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no transfer for consideration takes place (in which case no Belgian exit tax becomes due; however, capital gains tax might be due in the country of residence at that time).
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Conclusion
Employers offering equity-based compensation should be mindful when relocating employees who qualify as Belgian tax residents. In particular, it is recommended to inform affected employees of the potential exit tax implications and encourage them to seek advice from their personal tax advisor.
For further information, please contact your regular Pro-Pay business partner or reach out via tax@pro-pay.be.
